crm stock: CRM Stock falls as Salesforce gives weak 2027 forecast despite strong earnings
Sales force stock is down more than 28% so far in 2026, Reuters reported. Experts say demand is weak as companies cut technology spending due to global economic uncertainty. Businesses now spend only on basic software and cost-cutting tools. Investors are also concerned that Salesforce is spending billions of dollars on risky AI technology.
There are fears that new AI initiatives could disrupt traditional software companies. Despite short-term concerns, Salesforce raised its long-term 2030 revenue target to $63 billion. The company also announced a massive $50 billion share buyback plan.
CMR’s latest earnings results
Salesforce reported revenue of $11.20 billion in the fourth quarter, slightly beating estimates. As CNBC noted, adjusted earnings came in at $3.81 per share, above the $3.04 expected. Revenue increased 12% over last year; This was the fastest growth in the last two years. Net income rose to $1.94 billion from $1.71 billion last year. Future committed revenue reached $35.1 billion, above expectations.
Artificial intelligence investments and business moves
Salesforce makes powerful use of Agentforce AI technology to automate customer service efforts. Annual revenue from Agentforce AI exceeds $800 million. The company has launched an AI Slackbot assistant inside the Slack app.
Salesforce also completed its $8 billion acquisition of Informatica. Informatica had revenue of $399 million in the quarter, CNBC noted. The company also plans to acquire marketing company Qualified.
CEO Marc Benioff said the buyback occurred because stock prices are currently low. Salesforce earned $811 million from its investment in Anthropic. Benioff said Salesforce invested approximately $330 million in Anthropic.
Market and competitive pressure
Investors worry that generative AI could slow the growth of major software companies. Recently, IBM’s shares fell 13% following its AI coding tool announcement, CNBC reported. Five of ServiceNow’s customers switched to Salesforce products this quarter. Analysts at Morgan Stanley said AI growth is still in its early stages.
CRM shares are down 28% this year while the S&P 500 is up about 1%. Salesforce reported strong earnings, but its weak 2027 forecast and heavy AI spending worried investors, causing CRM stock to fall despite the company’s focus on long-term AI growth.
FAQ
Q1. Why have CRM shares fallen recently?
CRM shares fell after Salesforce gave a weak revenue forecast for 2027, leaving investors worried about slow future growth.
Q2. Is Salesforce still growing despite weak forecasts?
Yes, Salesforce is still growing because its recent earnings are strong and it is investing heavily in AI for future demand.
